Markets Open Higher Led by Pharma, Auto, IT; Nifty Nears 24,700
Indian benchmark indices opened on a firm note on Thursday, buoyed by buying in pharma, auto, and IT sectors, even as global cues remained mixed.
As of 9:29 AM, the BSE Sensex was up 268.80 points or 0.33% at 81,267.09, while the NSE Nifty 50 advanced 82.75 points or 0.34% to 24,702.95.
Broader markets also showed strength:
- Nifty Midcap 100 rose 0.45% to 58,188
- Nifty Smallcap 100 climbed 0.78% to 18,398.75
- However, Nifty Bank edged lower by 0.05% to 55,647.15
According to market analysts, the bullish sentiment seen on Wednesday continued into Thursday. A sharp drop in the India VIX (Volatility Index) by nearly 5% added to the positive tone, suggesting improved investor confidence.
“For Nifty, 24,462 remains a critical support level sustaining the uptrend. A breach may drag the index down to 23,800. Immediate resistance lies between 24,760 and 24,882,” said Akshay Chinchalkar, Head of Research at Axis Securities.
“Global markets are also supportive of risk-on sentiment,” he added.
Top Movers:
Sensex gainers included NTPC, PowerGrid, M&M, HDFC Bank, HCL Tech, TCS, IndusInd Bank, and Kotak Mahindra Bank.
On the flip side, Nestle India, Titan, Bajaj Finance, Tata Motors, and Tech Mahindra were among the top losers.
Macro Signals:
Investors are also digesting geopolitical developments and economic data. A sharp fall in the US ISM Manufacturing PMI has heightened concerns over a slowdown in the US economy.
“The drop in US PMI suggests a decelerating economy. The 10-year US bond yield has fallen to 4.36%, and it may trend lower,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“This could benefit emerging markets like India in the medium term. ‘Buy on dips’ remains the recommended approach, especially in rate-sensitive sectors,” he noted.
Global Cues:
- Asian markets were largely positive, with Hong Kong, Seoul, Bangkok, Jakarta, and China in the green, while Japan traded in the red.
- On Wall Street, the Dow Jones dipped 0.22%, while the S&P 500 ended flat and the Nasdaq rose 0.32%, supported by tech gains.
Institutional Activity:
Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹1,076.18 crore on June 4. Domestic Institutional Investors (DIIs) were also strong buyers, netting ₹2,566.82 crore worth of equities.
